scholarly journals Relationship Between Economic Climate and the Level of Barriers to Doing Business in the Services Sector in the EU Countries

2021 ◽  
Vol 16 (2) ◽  
pp. 240-248
Author(s):  
Robert Skikiewicz
Keyword(s):  
Cross Correlation ◽  
Growth Cycle ◽  
Services Sector ◽  
Eu Countries ◽  
Doing Business ◽  
Cyclical Fluctuations ◽  
Economic Climate ◽  
Cross Correlation Analysis ◽  
The Business Cycle ◽  
The Eu

Abstract Development of the whole economy and sectors of the economy is influenced by cyclical fluctuations, what can be observed as slowdown or acceleration of the economic processes. The identification of the leads and lags between the economic indicators, that reveals cyclical fluctuations is very important. The paper attempts to diagnose the lead and lag relationship between the economic sentiment indicators and the indicators of barriers to doing business in the services sector. The growth cycle approach was applied in the paper. A cross correlation analysis was conducted to identify the lead / lag relationship between the variables. The results of the analysis enable to conclude if the confidence indicator is a leading or lagged indicator and what is the length of lead / lag in relation to the indicators of barriers to doing business in the services sector in the EU countries. The study indicate the number of quarters from the peak or through of the business cycle in the services sector after that the level of factors limiting business activity will start to grow or drop. The results of the study can be useful both to the managers of firms as well as the governments.

scholarly journals Cyclical Fluctuations in the Banking Services Market and the Changes in the Situation of Entities from the Financial Services Sector

2019 ◽  
Vol 5 (52) ◽  
pp. 118-129
Author(s):  
Robert Skikiewicz ◽  
Józef Garczarczyk
Keyword(s):  
Financial Services ◽  
Cross Correlation ◽  
Banking Sector ◽  
Time Range ◽  
Banking Services ◽  
Services Sector ◽  
Financial Services Sector ◽  
Cyclical Fluctuations ◽  
Banking Market ◽  
Cross Correlation Analysis

Abstract Section K of the services sector includes entities conducting financial and insurance activities and, among others, banks. Fluctuations in the whole economy and its individual sectors’ situation are interrelated; hence, one may also expect similarities of cyclical fluctuations in the banking sector and in the entire financial sector. The analyses in the article concern the connections between the cyclical fluctuations on the banking services market and in the entire K section of the services sector, grouping entities conducting financial and insurance activities in Poland. The analyses proved that changes in the economic situation appear earlier in the banking sector than in section K of the services sector. The time range of analyses covered the period from the first quarter of 2003 to the first quarter of 2018. Conclusions on relationships were formulated on the basis of cross-correlation analysis and the analysis of the turning points in the time series of variables describing the cyclical fluctuations in the banking market and in the K section of the services sector.

scholarly journals MACROECONOMIC FACTORS OF NON-PERFORMING LOANS IN COMMERCIAL BANKS

Ekonomika ◽  
2014 ◽  
Vol 93 (1) ◽  
pp. 22-39 ◽  
Author(s):  
Ričardas Mileris
Keyword(s):  
Credit Risk ◽  
Commercial Banks ◽  
Economic Conditions ◽  
Macroeconomic Factors ◽  
Eu Countries ◽  
Developed Economies ◽  
Economic Downturns ◽  
Macroeconomic Indicators ◽  
The Business Cycle ◽  
The Eu

Abstract. This article presents an analysis of macroeconomic factors and their impact on the percentage of non-performing loans (NPLs) in commercial banks of the EU countries. This problem is relevant because in recent years many EU countries had the economic downturns that can be visible in the main macroeconomic indicators. Also, banks have met the growth of non-performing loans when the debtors were not able to meet their financial obligations. The Basel III Agreement notes the necessity to consider the economic conditions of a country when assessing the credit risk of loan applicants. The results of this research can be useful for banks, because the main relations between macroeconomics and non-performing loans have been revealed. Since 2009, Lithuania has one of the highest NPL percentage in the EU, and the meaningful impact of economic deterioration on the debtors‘ ability to repay debts to banks has been proven. The same situation was ascertained in other EU countries with imperfect economic conditions. Conversely, it has been estimated that banking systems in the EU countries with developed economies are not very sensitive to the business cycle fluctuations. So, in Lithuanian banks, when managing credit risk, the consideration of economic conditions is very important.Key words: banks, credit risk, macroeconomics, non-performing loans

scholarly journals The Determinants of FDI Sectoral Structure in the Central and East European EU Countries

Economies ◽  
2021 ◽  
Vol 9 (2) ◽  
pp. 66
Author(s):  
Mario Pečarić ◽  
Tino Kusanović ◽  
Pavle Jakovac
Keyword(s):  
Market Integration ◽  
Manufacturing Sector ◽  
Capital Inflows ◽  
Fdi Inflows ◽  
East European ◽  
Services Sector ◽  
Eu Countries ◽  
Sectoral Structure ◽  
Gdp Growth Rate ◽  
The Eu

The EU model of market integration, based on financial openness, leads to divergence and sectoral specialization, which makes the convergence of Central and East European EU countries (CEE) in the EU questionable. The idea of the paper is that forms of foreign direct investment (FDI) have a differential effect on the growth and development of countries—i.e., it is assumed that FDI inflows into the manufacturing sector have a greater intensity and impact on economic growth than inflows into the services sector. Therefore, the aim of this paper is to analyze the system determinants and transmission mechanisms of the sectoral structure of FDI inflows on the sample of 10 CEE for the period 1995–2019. Following a critical analysis of previous research, a panel model was constructed in the empirical section. A developed credit market and the purchasing power of residents lead to greater capital inflows into the services sector, while a higher GDP growth rate and a depreciated real exchange rate lead to higher inflows into the manufacturing sector. The conclusion of the paper is that changing the structure of the domestic economy based on clear industrial and investment policies is the best way to attract developmentally efficient FDI.

scholarly journals Revisiting the Hypothesis of High Discounts and High Unemployment*

2020 ◽  
Author(s):  
Paolo Martellini ◽  
Guido Menzio ◽  
Ludo Visschers
Keyword(s):  
Business Cycle ◽  
Labour Market ◽  
Discount Rate ◽  
Theoretic Model ◽  
Natural Conditions ◽  
High Unemployment ◽  
Cyclical Fluctuations ◽  
The Us ◽  
The Business Cycle ◽  
The Eu

Abstract We revisit the hypothesis that cyclical fluctuations in unemployment are caused by shocks to the discount rate. We use a simple but rich search-theoretic model of the labour market in which the UE, EU and EE rates are all endogenous. Analytically, we show that an increase in the discount rate lowers the UE rate and, under some natural conditions, it lowers the EU rate. Quantitatively, we show that an increase in the discount rate from 4 to 10% generates a 3.5% decline in the UE rate and a 6% decline in the EU rate. These findings are at odds with the actual behaviour of the US labour market over the business cycle, which features a negative comovement between the UE and EU rates.

scholarly journals Business cycle coherence and OCA endogeneity testing during the integration period in the European Union

2013 ◽  
Vol 61 (4) ◽  
pp. 1033-1040 ◽  
Author(s):  
Nikola Najman ◽  
Petr Rozmahel
Keyword(s):  
Business Cycle ◽  
Output Gap ◽  
The European Union ◽  
Eu Countries ◽  
Currency Area ◽  
Integration Period ◽  
The Business Cycle ◽  
Optimum Currency ◽  
Oca Endogeneity ◽  
The Eu

The paper deals with assessing the EU from the new optimum currency area theory perspective. It focuses on measuring of the business cycle coherence applying the composite indicators of output gap similarity and synchronicity. Static as well as dynamic business cycle analysis is applied in the paper. In addition, the OCA endogeneity hypothesis is tested based on results of the business cycle coherence analysis. The results show high general coherence of the business cycles across the EU countries in terms of synchronicity measures. Detailed analysis of the output gap similarity indicates differences in the scale of cyclical deviations and impact of shocks in individual countries in the EU. Also the ability to cope with the crisis as a kind of external shock differs in the EU countries. The results do not provide a clear evidence of the OCA endogeneity hypothesis related to the Euro area member and non-member countries.

Forming an effective financial and investment environment in the eu countries-experience for Ukraine

2019 ◽  
pp. 4-13
Author(s):  
Ryzhyuk Yevgeny
Keyword(s):  
Banking System ◽  
Executive Branch ◽  
Investment Environment ◽  
Financial Investment ◽  
Eu Countries ◽  
Currency Exchange ◽  
Clearing System ◽  
Financial Infrastructure ◽  
Supranational Level ◽  
The Eu

The subject of the research is a set of institutional institutions and organizational and managerial relations that effectively regulate the financial and investment environment in the EU countries, comparing them with Ukrainian realities.The goal of writing this article is to develop practical and scientific-methodicalrecommendations on how to increase the efficiency of using financial and investment potential based on the experience of EU countries. The methodology of thework-system-structural and comparative studies (to understand the logic of thefunctioning of institutions that form the investment environment and the mechanisms of their interaction); monographic analysis (in studying the problems ofattracting investors); historical and economic analysis (in assessing the state andprospects of the European, as well as the Ukrainian economy). Results of work -it is revealed that modern European regulators are aimed at forming a holisticinvestment and financial infrastructure and investment platform at the supranational level. It was proposed to carry out further liberalization of currency regulation in Ukraine in order to transform it into a convenient and efficient electronicautomated currency exchange system and introduce the integration of the domestic depository system into the international depositary clearing system Clearstream.It was noted that the financial and investment environment in Ukraine is blockedand domestic monopolies are interested in this, thanks to lobbying in the Verkhovna Rada of Ukraine and in the executive branch they have distorted financial,investment and currency legislation for their interests and needs. Conclusions-thepresence of a holistic investment and financial infrastructure in the EU countriesis due to the gradual convergence and unification of legislation at the nationallevel to the supranational level. In addition, it is reasonably high investment positions of Ireland in the world and it was proposed to use this experience to createa favorable financial and investment environment in Ukraine. Note that the formation of the financial and investment environment in Ukraine according to European standards is hampered by: oligarchic monopolies, which parasitizes mainly onnatural monopolies; government corruption; confusing and incomprehensible legislation for investors; high tax rates and tax administration system; instability ofthe banking system, the risks of hryvnia devaluation; the insecurity of landagrarian relations; as well as armed conflict in the east of Ukraine.

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